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2023 Transition Management Survey

Past Surveys

Industry Trends


Asset Pools Managed by Responding Organizations

Traditional pension or defined benefit (DB) plan 59%
Defined contribution (DC) plan 46%
Endowment or foundation 29%
Other 29%

Total Investable Assets of Responding Organizations

<$500MM 10%
$500MM – $1B 10%
>$1B – $5B 27%
>$5B – $15B 13%
>$15B 41%

Total Value of All Portfolio Transitions Conducted Since January 1, 2021

<$100MM 14%
$100MM – $250MM 11%
>$250MM – $500MM 17%
>$500MM – $1B 6%
>$1B 53%

Average Number of Portfolio Transitions—Including Legacy and Target—Completed, by Period

Average
2016 4.8
2017 6.4
2018 6.5
2019 8.2
2020 (through June 30) 7.7
2021 6.2
2022 (through June 30) 3.8

Expectation for Number of Portfolio Transitions in 2023 vs. 2021

Expect more transitions 19%
Expect fewer transitions 33%
Expect roughly the same number of transitions 47%

Main Reasons for Conducting the Transition(s)

Manager underperformance 43%
Asset allocation shift 68%
Restructure of your fund 39%
Portfolio Rebalancing 43%
Change in manager personnel and/or structure 30%
Change in fund/manager benchmark 23%
Cash flow, in or out 25%
Merger of firms 2%
Other 5%

Was an Unaffiliated Consultant Used to Assist in the Transition(s)?

Yes 34%
No 66%

Since January 2021, Were Any Transition Events Completed Directly With an Investment Manager(s)?

Yes 44%
No 53%
Unsure / Don’t know 3%

Do You Have a Panel of Approved Transition Management Providers?

Yes, officially—i.e., providers have completed “evergreen” agreements 34%
Yes, unofficially—i.e., have a list of trusted providers but no formal agreements 27%
No 39%

Number of Firms on the Panel

1 3%
2 47%
3 24%
4 21%
5 or more 6%
1 2 3 4 … 10